Prices
Capitalism provides a framework for the setting of prices for goods. In a capitalist economy, price setting is primarily driven by market forces—specifically supply and demand—though it can also be influenced by costs, competition, and, in some cases, government intervention.
In a free market, the price system is the mechanism through which the value of goods and services is determined. Prices adjust based on:
- Supply: How much of a product is available.
- Demand: How much consumers want at different prices.
- Marginal utility: The additional satisfaction a consumer gets from one more unit of a good, which influences willingness to pay

